Problembeta industries has net income of 3900000 and it has, Ask an Expert

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Beta Industries has net income of $3,900,000, and it has 730,000 shares of common stock outstanding. The company's stock currently trades at $34 a share. Beta is considering a plan in which it will use available cash to repurchase 15% of its shares in the open market. The repurchase is expected to have no effect on net income or the company's P/E ratio.

Required:

Question: What will be its stock price following the stock repurchase?

Note: Please provide reasons to support your answer.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91173272

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